1. CORPORATE INFORMATION:
Riddhi Siddhi Gluco Biols Limited (the Company) is engaged in the
business of generation and selling power through windmill and in
business of trading in agriculture and metal commodity items.
2. Employee Benefits:
a. Defined Benefit Plan
The Company has a Defined Benefit Gratuity plan. The unfunded plan
provides for a lump sum payment to employees, at retirement, death
while in employment or on termination of employment, of an amount
equivalent to 15 days salary for each completed year of service or part
thereof in excess of six months. Vesting occurs upon completion of five
years of continuous service.
The following table summarizes the components of net benefit expense
recognised in the Statement of Profit and Loss and liability recognised
in the balance sheet for the plan.
3. The Company has commodity trade receivables amounting to
Rs.7,594.82 lacs (Previous Years: Rs.7,623.55 lacs) as at March 31,
2015 pertaining to various commodities contracts executed through
brokers on the National Spot Exchange Limited (NSEL). Over past few
months, NSEL is unable to fulfill its scheduled payment obligations as
agreed by them. Consequently, the Company has pursued a legal action
against NSEL through NSEL Investor Forum which has also filed complaint
in Economic Offences Wing of Mumbai (EOW). Considering the recent
development and action taken by EOW against various borrowers of NSEL,
the Company believes that it shall recover the outstanding dues over a
period of time and therefore, the management believes that no provision
is required to be made for the year ended March 31, 2015. The Company
has received Rs.Nil (Previous Year: Rs.5.79 lacs)between period ending
March 31, 2015 and date of adoption of accounts by the Board of
The Statutory auditors have qualified their audit reports for the years
ended March 31, 2015 and March 31, 2014 for their inability to
determine the amount of provision for doubtful receivables that may be
required to be made in respect of the above matter.
4. The Company on receipt of approval from the Board of Directors in
their meeting held on May 21, 2015, has entered into a Share Purchase
Agreement (SPA) with the Promoters and entities forming part of the
promoter group of Shree Rama Newsprint Limited (Target Company) for
acquiring 2,82,77,677 equity shares of Rs.10 each, constituting 48.62%
of the total paid up equity share capital of Target Company at a total
consideration of Rs.1 lacs. The said acquisition would be subject to
the terms of the SPA and necessary statutory and regulatory approvals,
as may be required. Further, the Company would also be subscribing to a
preferential allotment of 6,00,00,000 equity shares of Rs.10 each of
In connection with the aforesaid, the Company in compliance with the
Securities and Exchange Board Of India (Substantial Acquisition Of
Shares And Takeovers) Regulations, 2011 has initiated the process of
Open offer for acquisition of public equity shares of the Target
Company upto 3,85,21,089 Equity shares of Rs.10 each representing 26%
of the Emerging Paid Up Equity share capital of the Target Company. The
offer price is Rs.10 per fully paid up equity share aggregating to
Rs.3,852.11 lacs and will be paid in cash.
5. The Company''s fixed assets include windmills having generating
capacity of 33.5 MW and carrying amount of Rs.11,731.75 lacs as at
March 31, 2015. The Company has entered into long term Power Purchase
Agreement (PPA) in 2012 with State Distribution Corporations (Discoms)
for a period ranging from 13-25 years based on a substantially fixed
tariff per unit.
An incessantly lower Plant Load Factor (PLF) of windmills then expected
over last few years of operations due to non-availability of grid and
land related issues has triggered assessment of recoverable amount of
the windmills in terms of Accounting Standard (AS) 28, Impairment of
Assets, as these are factors indicating probable impairment. For the
purpose of the said assessment, windmills are considered as a cash
generating unit. The ''Recoverable Amount'' of windmills has been
measured on the basis of its Value in Use by estimating the future cash
inflows over the estimated useful life of the windmills. The cash flow
projections are based on estimates and assumptions relating to tariff,
operational performance of the windmills, terminal value etc., which
are considered reasonable by the management.
On a careful evaluation of the aforesaid factors, the management has
concluded that the Recoverable Amounts of the windmills are lower than
their carrying amounts as at March 31, 2015. Accordingly, the Company
has recognized impairment loss of Rs.1,075.69 lacs during the year in
respect of the windmills. In case the estimates and assumptions change
in future, there would be a corresponding impact on the Recoverable
Amounts of the windmills. The impairment loss on fixed assets relate to
the Wind Energy Generation primary business reportable segment. The
cash flows are discounted using the pre-tax nominal discount rate of
13.95% derived from the weighted average cost of capital.
6. During the year, the Company has bought back 23,41,914 fully
paid-up equity shares of Rs.10 per equity shares at the rate of Rs.450
per equity share after complying with the provisions of the Companies
Act, 2013 and the Rules framed thereunder in this regard through
Tender Offer route as prescribed under the SEBI (Buy-Back of
Securities) Regulation, 1998. On completion of buy back, the Company
has paid Rs.10,538.61 lacs, which has been reduced from Share Capital,
General Reserves and Securities Premium Account of the Company by
Rs.234.19 lacs, Rs.3,501.52 lacs and Rs.6,802.90 lacs respectively. The
Company has also transferred Rs.234.19 lacs from General Reserve to
Capital Redemption Reserve pursuant to the Buy Back of Equity Shares.
All shares bought under buy back were extinguished by the Company as of
March 31, 2015.
7. During the current year, the Company has written back an amount of
Rs.2,096.54 lacs towards remission of liability pertaining to plant and
machineries purchased which is no longer payable, based upon the
settlement reached with the vendor towards compensation of losses
suffered by the Company. The amount written back has been disclosed
under Other Income in the Statement of Profit and Loss.
8. Segment Reporting:
a. The Company has identified business segments as its primary segment
and geographical segments as its secondary segment. Segments have been
identified taking in to account the nature of the products, the
differing risks and return, the internal organization and management
structure and internal reporting system.
b. The Company''s Operations pre-dominantly relate to Wind Energy
Generation and trading of agriculture and metal Commodities.
Accordingly, the Company has identified Wind Energy Generation and
Trading business as the primary business segments, consisting of sale
of wind power and trading of commodity items respectively.
c. Since all the operations of the Company are limited to India only
there are no reportable geographical segments.
d. Segment Revenue, Segment Results, Segment Assets and Segment
Liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis. Income and
expenses, which are not directly relatable to the segments, are shown
as unallocated items. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as
9. The Gross amount required to be spent by the Company during the
year towards Corporate Social Responsibility is Rs.41.54 lacs as per
section 135 of Companies Act, 2013. The Company has contributed Rs. Nil
towards Corporate Social Responsibility during the year.
10. The Company has not received any intimation from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 and hence disclosures under section 22 of
The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006
a. Amount due and outstanding to suppliers as at the end of accounting
b. Interest paid during the year;
c. Interest payable at the end of the accounting year; and
d. Interest accrued and unpaid at the end of the accounting year have
not been given.
11. The Company has significantly reduced trading in commodities
business due to market volatility and accordingly the revenues from
operations for the year ended March 31, 2015 are lower than those for
the previous year.
12. The Company entered into aleasing arrangement in respect of a
godown with Riddhi Siddhi Corn Processing Private Limited for a period
of 24 months, with an option to vacate by giving three month''s notice.
The future lease rental income in respect of this lease arrangement is
13. Figures for the previous year have been regrouped / rearranged,
wherever necessary, to conform to current year''s classification.